Year 2 Year 1 Cash $ 72,000 $42,500 Accounts Receivable (net) 61,000 70,200 Inventories 121,000 105,000 Investments
Year 2 Year 1 Cash $ 72,000 $42,500 Accounts Receivable (net) 61,000 70,200 Inventories 121,000 105,000 Investments
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 15E
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1. The comparative balance sheets of Barry Company, for Years 1 and 2 ended December 31, appear below in condensed form.
Year 2
|
Year 1
|
|
Cash |
$ 72,000
|
$42,500
|
61,000
|
70,200
|
|
Inventories |
121,000
|
105,000
|
Investments |
-
|
100,000
|
Equipment |
515,000
|
425,000
|
Accumulated Depreciation—Equipment |
(153,000)
|
(175,000)
|
$616,000
|
$567,700
|
|
|
||
Accounts Payable |
$ 59,750
|
$47,250
|
Bonds Payable |
-
|
75,000
|
Common Stock, $20 par |
375,000
|
325,000
|
Premium on Common Stock |
50,000
|
25,000
|
131,250
|
95,450
|
|
$616,000
|
$567,700
|
Additional data for the current year are as follows:
(a) |
Net income, $75,800.
|
|
(b) | Depreciation reported on income statement, $38,000. | |
(c) | Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $150,000. | |
(d) | Bonds payable for $75,000 were retired by payment at their face amount. | |
(e) | 2,500 shares of common stock were issued at $30 for cash. | |
(f) | Cash dividends declared and paid, $40,000. | |
(g) | Investments of $100,000 were sold for $125,000. |
Prepare a statement of
Barry Company
Statement of Cash Flows
For the Year Ended December 31, Year 2
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